Putting Cryptocurrency into a Living Trust #
Yes, you can put cryptocurrency into a living trust. The mechanics are straightforward once you understand that crypto isn’t held the same way as a bank account or brokerage. You’re not calling Coinbase to retitle an account. You’re assigning wallet ownership or transferring the LLC that holds your crypto into the trust. The trust becomes the legal owner, you control it as trustee, and succession happens according to your trust document when you die.
The direct approach is assigning your wallets to the trust. You create or amend your living trust to include cryptocurrency holdings, then document that specific wallets (identified by public addresses) are trust property. You’re not moving the crypto or changing private keys. You’re establishing that the person who controls those keys is acting as trustee, not as an individual. When you die, your successor trustee gains legal authority to control those wallets based on the trust terms.
The cleaner method for substantial holdings is putting an LLC into the trust. You form an LLC that owns your cryptocurrency, you serve as manager, then you transfer your LLC membership interest to your living trust. The trust now owns the LLC, the LLC owns the crypto, and you continue managing everything as trustee. This adds a layer of separation that helps with liability protection and makes succession cleaner since your successor trustee inherits a membership interest with clear operating procedures, not just a list of wallet addresses.
Either way, the trust controls succession without requiring shared private keys. Your spouse or kids don’t need your seed phrase sitting in a drawer somewhere. They don’t get early access that lets them move assets before you intended. When you die, the successor trustee you named steps into legal authority and follows the custody protocols you documented for accessing wallets. That’s structure, not secrets.
The paperwork matters more than people realize. Your trust document needs to specifically reference digital assets and give your trustee clear authority to manage cryptocurrency. Generic trust language from 2010 doesn’t cut it. You need documentation showing when crypto was contributed to the trust, at what value, and how it’s held. This protects your heirs during probate and gives them clean records for tax reporting.
Custody stays critical throughout this process. You’re not moving Bitcoin to some custodian just because it’s in a trust now. Keep custody on D’Cent hardware wallets where you maintain security while documenting access procedures for successor trustees. The trust owns the assets legally, but the private keys stay protected through proper cold storage protocols.
Here’s where working with a registered investment advisor who understands digital assets pays off. Most wealth management services still treat crypto like a side hobby rather than a legitimate asset class requiring proper custody and estate planning integration. Digital Wealth Partners provides fiduciary-level guidance for high-net-worth individuals holding cryptocurrency alongside traditional portfolios. That means advice on trust structures, custody recommendations, and portfolio allocation that serves your interests rather than steering you toward products with commission structures.
For families with complex situations (multiple trusts, business interests, substantial crypto holdings, multi-generational planning), family office services make sense. You’re coordinating estate attorneys who may not understand blockchain technology, tax advisors tracking basis across wallet transfers, and investment strategy that includes both stocks and stablecoins. Digital Ascension Group provides family office services that coordinate these pieces, making sure your trust documents work with your custody approach and your succession plan makes sense for digital and traditional assets.
The gift and estate tax implications change based on when you fund the trust and how much your crypto has appreciated. If you’re putting Bitcoin into an irrevocable trust to remove it from your taxable estate, that’s different from adding it to a revocable living trust that stays in your estate until death. Asset custody and tax strategy need to align, which requires advisors who actually understand both domains.
Do the paperwork right. Update your trust document to include digital assets explicitly. Document wallet assignments or LLC transfers with dates and values. Keep custody secure with hardware wallets and clear succession protocols. Don’t assume your generic trust from years ago automatically covers cryptocurrency you bought last month.
Contact Digital Ascension Group to learn how our family office services can coordinate your complete financial picture, including living trust structures for cryptocurrency, custody strategy, and estate planning that works with digital assets.
